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Deutsche Bank board member says staff not quitting over bonus cuts paper


FRANKFURT Bonus cuts at German flagship lender Deutsche Bank (DBKGn. DE), announced in January, have so far not led to a mass exodus of employees, one of its board members told a German weekly newspaper."Fluctuation is normal and within the usual boundaries and was even lower in January compared to the previous year," Chief Administrative Officer Karl von Rohr told Frankfurter Allgemeine Sonntagszeitung (FAS) when asked if the bank had lost staff. The cuts will see the bank's bonus pool shrink by about 80 percent and hit about a quarter of Deutsche's roughly 100,000 staff. Carmaker Volkswagen (VOWG_p. DE) on Friday announced major changes to executive pay with a cap on earnings, looking to quell widespread anger over bonuses paid even as the carmaker suffered record losses after the emissions scandal.

Deutsche Bank, Germany's flagship lender, posted a net loss of 1.9 billion euros ($2.01 billion) in the final quarter of 2016 as legal costs for past misdeeds weighed heavily on results.

While Deutsche Bank has drawn a line under some major legal headaches, earmarking 4.7 billion of total litigation reserves of 7.6 billion euros for settlements such as over the sale of toxic mortgages and sham Russian trades, it is not yet out of the woods. About 20 large cases account for 90 percent of the bank's legal provisions, von Rohr said, adding half of those had either been concluded already or were about to be completed. "The rest will hopefully be largely dealt with by the end of the year."

Snaps sought after shares set for market debut after $3.4 billion IPO


Snap Inc's in-demand shares are set to start trading in New York on Thursday after the owner of the popular Snapchat messaging app raised $3.4 billion in its initial public offering (IPO) on Wednesday, above its price expectations. Snap's IPO was oversubscribed by more than ten-times, indicating a hunger for the shares that might produce a pop on the first day of trading. The New York Stock Exchange carried out a trial run last week to make sure the third-biggest ever technology IPO goes smoothly. Facebook Inc's eagerly awaited market debut in 2012 was marred by a technical glitch at rival exchange Nasdaq. After pricing its IPO at $17 a share, the owner of the popular disappearing-message app has a market value of roughly $24 billion, more than double the size of rival Twitter Inc and the richest valuation in a U.S. tech IPO since Facebook five years ago.

The share sale was the first test of investor appetite for a social-media app that is beloved by teenagers and people under 30 for applying bunny faces and vomiting rainbows onto selfies, but has yet to convert "cool" into cash. Despite a nearly seven-fold increase in revenue, the Los Angeles-based company's net loss widened 38 percent last year. It faces intense competition from larger rivals such as Facebook's Instagram as it grapples with decelerating user growth. Snap priced 200 million shares on Wednesday at $17 each, above its expected range of $14 to $16 dollars a share.

The sale was well timed, as investors look for fresh opportunities after 2016 marked the slowest year for IPOs since 2008. The launch could encourage debuts by other so-called unicorns, tech startups with private valuations of $1 billion or more. Investors bought the shares despite them having no voting power, an unprecedented feature for an IPO at odds with rising concerns about corporate governance over the past few years from fund managers looking to gain influence over executives.

Although Snap is going public at a much earlier stage in its development than Twitter or Facebook, the five-year-old company is valuing itself at nearly 60 times revenue, more than double the 27 times revenue mark Facebook fetched in its IPO. To justify its relatively high valuation and fend off concerns about slowing user growth, Snap has emphasized how important Snapchat is to its users, how long they spend on the app and the revenue potential of the emerging trend for young people to communicate with video rather than text. Snap is set to begin trading on Thursday on the New York Stock Exchange under the symbol SNAP.